Pepco calls in advisors to oversee Poundland transition
According to Sky News, the company has asked FRP Advisory to act as an observer for the move, only weeks after it struck a deal to sell Poundland to Gordon Brothers
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Pepco Group is reportedly set to draft in advisers to help oversee Poundland’s transition to its new owner, in a process that will lead to store closures and job cuts.
According to Sky News, the company has asked FRP Advisory to act as an observer for the move, only weeks after it struck a deal to sell Poundland to Gordon Brothers.
It comes as the High Court is reportedly set to sanction a restructuring plan in the last week of August.
In March, Pepco confirmed that it was “actively exploring” a potential sale of Poundland amid rising pressures on the business, and instead plans to focus on the Pepco brand as a single future format.
The discount retail group said its “ultimate ambition” is to operate under a single Pepco format, which largely drives the group’s earnings, with a focus on its higher margin Pepco clothing and general merchandise ranges.
Last month, Poundland confirmed that as a result, up to 150 stores and two distribution centres could close under the new restructuring plan, subject to court approval.
Following Poundland’s acquisition by Gordon Brothers, an initial 68 stores will close, and along with rent reduction plans, its estate will eventually fall to 650-700 stores, down from around 800 today.
The retailer also confirmed plans to cease online sales and withdraw the sales of frozen food. As well as scaling back its digital presence, converting Poundland.co.uk from a transactional website to a brand website, the retailer also confirmed plans to end its Perks loyalty app, which was rolled out across the UK last year.
At the time, Poundland managing director Barry Williams said: “It’s no secret that we have much work to do to get Poundland back on track. While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores. It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
Pepco Group declined to comment.
